How The New Government Reforms Could Impact The Cleaning Industry

As the dust settles after the summer general election and the new UK government takes shape, we are beginning to witness some of the inevitable shifts in priorities and policies. While staying neutral on the political front, it’s clear that these changes will significantly impact businesses, particularly within the cleaning industry.

In his speech to Parliament, the King emphasized: “My government is committed to making work pay and will legislate to introduce a new deal for working people to ban exploitative practices and enhance employment rights.”

For companies in the commercial cleaning sector, these proposed changes could be monumental. One of the key areas of concern is the anticipated shift in the balance of power between employers and employees. The forthcoming New Deal employment reforms, expected by mid-October, will likely introduce new legislation that could transform how cleaning businesses manage their workforce.

Over the years, employers have benefited from various legislative protections, but some of these may be rolled back. One significant change is the grace period for new hires. Currently, employers can terminate employees without the risk of unfair dismissal claims within the first two years of employment. Under the new reforms, this grace period may be reduced to the first day of employment. For cleaning companies, which often rely on a high turnover of staff, this could be a significant concern.

This shift could lead to more time spent on HR processes such as consultations and formal performance reviews, right from day one. For cleaning contractors, this means an increase in operational management time, more paperwork, and possibly the need for enhanced HR expertise. Legal costs could also rise if disputes lead to tribunal hearings. Given that many cleaning companies, especially small and medium-sized enterprises (SMEs), already operate with tight budgets and limited administrative capacity, these reforms could introduce new challenges.

Further changes may include the removal of zero-hour contracts, which are common in the cleaning services industry. Employers might face increased administration time to manage employee rights for benefits like sick pay, maternity and paternity leave, and flexible working arrangements – all from the employee’s first day of work.

While these changes certainly offer benefits to workers – especially in terms of job security and fair treatment – they may come at a cost that smaller cleaning businesses can ill afford. Managing staff effectively is already a challenge for many cleaning companies, and these additional layers of regulation could exacerbate that.

For employers, this could also reduce their willingness to take on workers who may require more time to become productive. In the cleaning industry, where efficient and reliable service is crucial, any reduction in workforce flexibility could result in fewer job opportunities, particularly for those looking to enter the industry for the first time. Companies may become more cautious when hiring, reluctant to give new employees the chance to prove themselves if they are obligated to retain unsuitable candidates from day one.

After all, assessing the full skills, competence, and work ethic of new employees in a cleaning role from their very first day is a difficult task. This could alter recruitment strategies in the industry, leading to more stringent hiring processes, and potentially limiting opportunities for those looking to enter the commercial cleaning workforce.

The government has promised to consult and listen to business leaders before finalizing these reforms. “It is crucial we get the balance right,” the Department for Business and Trade said. “We will consult fully with businesses,” including those in key sectors like the cleaning services industry.

There’s no question that this could be the most significant change in UK employment law in over 20 years, with widespread implications for the cleaning sector. It’s essential for businesses in the industry to stay informed and prepare for how these changes may affect their operations, staffing strategies, and overall competitiveness.

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Whether you’re just starting out in the cleaning industry or striving to advance your business, we’re your partners in progress, ready to assist, innovate, and motivate. Contact our friendly team today for further details on how we can meet your specific requirements.